Home prices soared in 2016 as they struggled with higher demand and lower housing inventory. In fact, some markets even hit new highs in home prices.
Out of 201 metropolitan areas in the U.S. with populations of at least 200,000, 89, or 44%, reached new all-time highs in home prices in 2016, the National Association of Realtors announced, using new data from ATTOM Data Solutions.
“Much of this is due to a growing economy and the shift from a manufacturing economy to a service-based economy,” said Matthew Watercutter, HER REALTORS senior regional vice president and broker of record. “Median home prices in our markets reached its highest peaks in 2016, largely due to lack of inventory, and supply and demand.”
HER REALTORS is based in Ohio, where several markets, including Dayton, Columbus and Cincinnati saw new peaks.
“Buyers are moving and relocating, causing a great deal of competition for quality inventory, and causing homes to sell quickly, and at a higher price than in recent years,” Watercutter said.
Among those markets, NAR points out five hot markets which saw new highs in 2016:
1. Dallas-Fort Worth, Texas: $230,571
It's no surprise that this rising hotbed for housing would be among the top metros to see new highs in 2016. In fact, it constantly lands in lists of the hottests markets in the U.S.
2. Houston, Texas: $214,795
But Dallas isn't the only Texas city to reach new heights in 2016. As it turns out, all of Texas is experiencing tremendous growth, and many companies are expanding in the state as a result.
3. Atlanta, Georgia: $181,000
Home of the Atlanta Falcons, that is if they let the team come back after this year's Super Bowl. Too soon? This city is seeing substantial growth and is even tied as one of the second fastest markets in the nation for time to recuperate costs it takes to buy a home.
4. Boston, Massachusetts: $390,000
This hot market hit new highs in 2016, but could be seeing the beginning of a slow-down. In our Super Bowl showdown, HousingWire compared the market to Atlanta and found that, while much more expensive, Boston could be seeing a significant slowdown in home price growth.
5. San Francisco: $720,000
This city struggled with skyrocketing home prices which began to cool down during the second part of the year. However, that did not keep the city from facing 17 ballot-measures for affordable housing during November's elections.
However, there are still many markets, 95 to be exact, that remain below their pre-recession peaks in median home prices, NAR points out.
